Yelp (YELP) investor relations material

Executive summary

• Net revenue grew 1% year-over-year to $376 million, exceeding the high end of guidance, with net income margin at 8% and Adjusted EBITDA margin at 24%.

• Net income declined 28% year-over-year to $32 million.

• Adjusted EBITDA decreased 9% year-over-year to $91 million.

• AI-driven initiatives, including Yelp Assistant and Hatch, accelerated product development, engagement, and revenue growth.

• Other revenue nearly doubled year-over-year, reaching a record $33 million, driven by Hatch, data licensing, and food orders.

Financial highlights

• Net revenue for Q2: $376 million, up from $370.4 million in Q2 2025, $8 million above the high end of guidance.

• Net income for Q2: $32 million, down from $44.1 million in Q2 2025, with an 8% margin.

• Adjusted EBITDA for Q2: $91 million, down from $100.5 million in Q2 2025, with a 24% margin.

• Free cash flow for Q2: $61.1 million, up from $45 million in Q2 2025.

• Services ad revenue was flat at $241 million; RR&O ad revenue fell 10% to $102 million.

Outlook and guidance

• Full-year net revenue guidance narrowed to $1.460–$1.470 billion.

• Full-year Adjusted EBITDA guidance set at $315–$325 million.

• Third quarter net revenue expected between $365 million and $370 million.

• Third quarter Adjusted EBITDA expected between $70 million and $75 million.

• Targeting $250 million annual run rate in other revenue by end of 2028.